FTC settlement requires Southern Glazer’s to compensate retailers over price discrimination

The Federal Trade Commission has settled a case against Southern Glazer’s Wine and Spirits over allegations that the distributor discriminated against smaller and independent alcohol retailers. The FTC said the company offered discounts and rebates to large chains including Total Wine, Walmart and Kroger that were not made available to smaller stores, including some located nearby. The agency brought its lawsuit in December 2024 under the Robinson-Patman Act, a 1936 law that permits volume discounts only where a seller can demonstrate genuine cost savings from bulk sales.

Under the settlement, Southern Glazer’s must pay a smaller retailer when it engages in significant or recurring price discrimination while selling the same products to a larger nearby store. An independent monitor will supervise the arrangement for six years. The company must provide the monitor with detailed records twice a year.

The order covers sales to the five largest chain retailers in 26 states. The FTC said its original allegations covered 33 states, but a later investigation did not establish discrimination in seven of them. Southern Glazer’s said it was pleased to resolve the case without a trial or admission of wrongdoing.

Alan Greenspan, its chief legal and compliance officer, said the company had not violated the Robinson-Patman Act and did not expect material changes to its pricing practices. FTC Chairman Andrew Ferguson said he had initially believed the company could show that most price differences reflected different supply costs. However, he said the settlement was the best outcome for the parties after a federal court allowed the case to proceed.

Southern Glazer’s reported $26 billion in retail wine and spirits revenue in 2023, according to the FTC. The agency said the company distributes about one in every three bottles of wine and spirits sold in the United States.